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EXECUTIVE SUMMARY
The objective of this field study is to examine the applicability and potential advantages of pull operational practices in a mid-size manufacturing organization. The results derived based on this field study point to both operational gains and customer-related benefits which can be attributed to pull operational practices.
Keywords: Re-engineering, Pull Practices, Mid-size Manufacturing, Marketing
INTRODUCTION
The framework depicted in Figure 1 was used to examine the current operational practices in a mid-size, welded stainless steel pipe firm. It was also used to identify areas of improvement in the existing operational system. Concepts related to the Theory of Constraints (TOC) and Business Re-engineering (BR) were used to modify the existing system. The modified system is designed to enhance operational efficiencies as well as the customer orientation of the firm.
The studied firm (XYZ Company) has been in business for more than 50 years. The Company is currently using a push operational system to produce products for inventory. The purpose of this study was to determine the overall benefits to XYZ Company resulting from re-engineering its operational system from traditional manufacturing system to a pull system, driven by customer demand. In the process, the impact of changes in customer requirements on the production line was evaluated. Finally, the TOC principles were used to determine the potential of a competitive advantage to XYZ Company due to the modified operational system.
BACKGROUND
Source: HighBeam Research, Re-engineering operational practices and processes to improve the...